Dubai RERA Escrow Accounts for Off-Plan Projects question: supplier wins a judgment against a developer for unpaid invoices on the developer's head

Dubai RERAEscrow Accounts for Off-Plan Projects

A supplier wins a judgment against a developer for unpaid invoices on the developer's head office fit-out. It asks to attach the money in the escrow account of the developer's off-plan tower in Arjan. Can it?

A Yes, up to the 5% retention held after the completion certificate
B No; escrow payments cannot be attached for the developer's creditors
C With the written consent of the purchasers who paid in, yes
D Yes; a court judgment allows attachment of any of the developer's accounts

Show the answer and explanation

Answer: B. No; escrow payments cannot be attached for the developer's creditors

Article 9(1) of Law No. 8 of 2007 dedicates an escrow account exclusively to building its project and provides that no attachment may be imposed on the payments in it for the benefit of the developer's creditors. A judgment creditor must look to the developer's other assets. The 5% retention in Article 14 is a holdback within the same protected account, not a pool available to creditors. Source: Law No. (8) of 2007, Arts. 9(1) and 14 (in force 12 Oct 2026).

Common mistake

Treating the escrow account as an ordinary developer bank account open to creditors.

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Study note: Escrow Accounts for Off-Plan Projects (Law 8 of 2007)Dubai RERApractice questions & mock exams

Related Dubai RERA practice questions

A tower in Dubai Marina has received its completion certificate. Its escrow account has a total value of AED 186,400,000; construction cost AED 140,000,000 and sold units are worth AED 210,000,000. How much must the escrow agent retain?A Jumeirah Village Circle project received its completion certificate on Wednesday, 20 January 2027, and DLD registered the units in the purchasers' names on Thursday, 15 April 2027. From when may the 5% retention be released to the developer?Noura has completed her broker training and passed the DLD's brokerage test. She asks which body Law No. 5 of 2020 empowers to issue qualification certificates to real estate practitioners. Which is it?

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Original study material mapped to the public exam domains; not a real test question.Independent. Not affiliated with DLD, RERA or DREI. Verify figures and rules against current guidance before relying on them.